New FHA Mortgage Limits Increased in Maricopa & Pinal Counties

The Federal Housing Administration (FHA) has TEMPORARILY raised the borrowing limits for government-insured home loans, the U.S. Department of Housing and Urban Development announced Thursday, March 6th 2008.
Updates highlighted HUD’s overall effort to make the processing of FHA loans easier and more cost-efficient so that lenders will be better able to offer FHA-insured loans and expand the availability of affordable financing for potential homebuyers. Down payment assistance from Nehemiah is available on all FHA purchase money loan programs.
What does this mean for the Phoenix area? The FHA maximum mortgage limits for Maricopa & Pima counties have been increased. The new mortgage limit for a single family home in Maricopa county is now $346,250 and Pima county is now $316,250.

An FHA loan allows potential home owners to purchase a home with only 3% down. The seller can contribute up to 6% of the buyers closing costs. Plus the buyer can get 100% of the down payment as a gift from a family member. So it is possible for someone to buy a home with an FHA loan with NO money out of pocket.